# Productivity Mediation: Z -> Log GDP/capita -> CA

| Variable | Step 1: Z->LP | Step 2: Z->CA | Step 3: Z+LP->CA | Step 4: LP->CA |
|:---|---:|---:|---:|---:|
| Z_1 | 1.6763*** | 7.0447 | 8.1753 | |
| | (0.2401) | (13.0224) | (12.3301) | |
| Z_2 | -0.0982*** | -0.8193 | -1.2463 | |
| | (0.0364) | (1.9525) | (1.8383) | |
| Z_3 | 0.0011 | 0.0258 | 0.0489 | |
| | (0.0015) | (0.0795) | (0.0747) | |
| fiscal_bal_gdp | 0.0005** | 0.4492*** | 0.4756*** | 0.4809*** |
| | (0.0002) | (0.0351) | (0.0361) | (0.0359) |
| nfa_gdp_lag | 0.0039* | -0.0267 | -0.0055 | 0.0471 |
| | (0.0021) | (0.2339) | (0.2225) | (0.2155) |
| rgdp_growth | 0.0024*** | 0.2221*** | 0.2268*** | 0.2289*** |
| | (0.0001) | (0.0222) | (0.0234) | (0.0233) |
| log_rel_opw | 0.3048*** | 2.2313*** | 0.5595 | 0.5792 |
| | (0.0089) | (0.4338) | (0.7251) | (0.7248) |
| kaopen | 0.0130*** | -0.0350 | -0.3929** | -0.4087** |
| | (0.0023) | (0.2007) | (0.1990) | (0.1947) |
| log_labor_productivity | | | 2.6617*** | 2.2981*** |
| | | | (0.7934) | (0.7127) |
|:---|---:|---:|---:|---:|
| N | 4165 | 4399 | 4053 | 4053 |
| R² | 0.8195 | 0.1456 | 0.1891 | 0.1883 |
| Countries | 162 | 162 | 160 | 160 |

*Panel GLS with country and year fixed effects. Standard errors in parentheses.*
*\*p<0.1, \*\*p<0.05, \*\*\*p<0.01*